Question

On 1st January, 2017, Mr. Mukesh Nagpal decided to open a computer training centre in Delhi. He purchased a commercial complex measuring 300 square feet carpet area at a cost of 3,50,000 and decided to invest 2,50,000 as a further capital in the proposed business

He approached Punjab National Bank for loan which agreed to provide 80% loan of the cost of computers. He bought 25 computers of HCL costing 30,000 each. He paid * 1,50,000 and P.N. Bank financed the remaining 80% amount of ? 6,00,000 @ 10% p.a. The loan was payable in 4 annual instalment along with interest due.

The transactions during the year were:

Purchased Furniture40,000

Fees received from students5,90,000

Bought computer stationery1,10,000

Sale of Computer Stationery1,60,000

Wages paid90,000

Salaries paid1,25,000

Electricity charges47,500

Advertisement22,000

Postage and Call 9500

General Expenses 6000

Insurance Premium46,00

Bought Printer Machine 30000
He withdrew 12,000 p.m. as drawing and repaid the annual instalment of bank loan along with interest due on 31st December 2017. Assume all transactions

took place through P.N. Bank. You are required to (1) Journalise these transactions after considering the following information: ) Depreciate building by 5% and computer and furniture @ 10% p.a.

(it) Salary unpaid 9,000

(iii) Advertisement includes unissued material worth 4,000.

(iu) Insurance prepaid 1,500.

(u) Stock of computer stationery 19,500. (2) Post them into ledger and prepare Trial Balance,

(3) Prepare financial statements for the year ended 31st. December, 2016​

Answer 1

Explanation:

On 1st January, 2017, Mr. Mukesh Nagpal decided to open a computer training centre in Delhi. He purchased a commercial complex measuring 300 square feet carpet area at a cost of 3,50,000 and decided to invest 2,50,000 as a further capital in the proposed business

He approached Punjab National Bank for l